Controller of Budget Agnes Odhiambo when she appeared before Parliamentary Accounts Committee on the 4th of June, 2014. Photo/Evans Habil
What you need to know:
AKibaki government paid Anurre Pereira Sh1.7 billion between 2003 and 2006.
Part of the money was paid after the government decided in August 2004 to terminate the contracts and stop payments; suggesting the earlier settlement to the Sri Lankan businessman was illegal.
Mr Pereira was behind First Mercantile Securities Corporation and Universal Satspace that were last month paid Sh1.4 billion.
The Controller of Budget on Wednesday called for the prosecution of members of the Kibaki’s government for paying the man at the heart of the Anglo Leasing contracts Sh1.7 billion in 2006, long after the payments had been stopped.
Agnes Odhiambo told the National Assembly’s Public Account Committee (PAC) that businessman Anurre Pereira was paid between 2003 and 2006.
Part of the money was paid after the government decided in August 2004 to terminate the contracts and stop payments; suggesting the earlier settlement to the Sri Lankan businessman was illegal. Mr Pereira was behind First Mercantile Securities Corporation and Universal Satspace that were last month paid Sh1.4 billion.
“The cumulative sum for two companies is Sh1.78 billion for three financial years. This excludes the Sh1.4 billion paid last month,” she said.
“I request this House to unearth the architects of the scheme and all parties should face full force. The payments caused pain and anguish to many Kenyans including myself and I implore Parliament to leave no stone unturned,’’ she said.
The government entered into contracts with the two firms on July 11, 2002 at the tail end of former President Daniel Moi regime. However, Mr Moi’s predecessor Mwai Kibaki administration executed payments after the contracts were suspended.
On Wednesday, the Controller of Budget said she approved payment to the two Anglo Leasing-type firms before Parliament gave its nod.
She told PAC that the approval was based on her analysis of the benefits to the country and in line with the Constitution.
Mrs Odhiambo said Kenya couldn’t settle a $600 million (Sh52 billion) debt owed to local banks that was set to be paid in May because the delayed settlement of the Anglo Leasing contracts had delayed the issuance of the Sh132 billion Eurobond. “Failing to pay the debts would have affected generations to come,” she said.
Her approval of the payment came a month after she declined and asked Treasury to get greenlight from MPs.
She said she declined to approve the payment the first time so that the matter could be handled by the National Assembly and generate public debate.
The committee led by Ababu Namwamba (Budalang’i, ODM) differed with Mrs Odhiambo, arguing that the argument about the Eurobond was a diversionary and scare tactic and shouldn’t be used to justify the payments.
“You knew clearly that both sides of the House had rejected the payments. Why did you proceed to authorise payments? Were you put under any pressure?” Mr Namwamba asked.
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